- Elisity provides IonQ access to more than 100 enterprise deployments
- The deal adds zero trust technology to IonQ’s PQC and QKD offerings
- Elisity will continue operating under its current leadership
IonQ has acquired zero trust security company Elisity, adding identity-based network security capabilities to its quantum security business.
IonQ said Wednesday it completed the all-stock transaction, issuing common stock valued at $1.15 billion to Elisity’s sellers. The agreement also provides for up to $150 million in additional consideration tied to Elisity’s revenue performance through January 2028.
The closing follows IonQ’s October agreement to buy Elisity in a deal valued at up to $1.3 billion. According to a Securities and Exchange Commission filing, the companies signed the merger agreement Oct. 9, and IonQ also agreed to establish a $100 million restricted stock unit retention pool for continuing Elisity employees.
What Does Elisity Bring to IonQ’s Cybersecurity Business?
The acquisition gives IonQ access to Elisity’s more than 100 enterprise deployments and established relationships with chief information security officers. Elisity also brings experience serving global customers with network security requirements.
James Winebrenner, CEO of Elisity, said the company’s experience from those deployments will inform its work with IonQ on post-quantum cryptography, or PQC, initiatives. He added that joining IonQ provides Elisity with additional resources and organizational scale to extend the technology customers already use.
Elisity’s technology helps customers discover connected assets, assess network risks and enforce identity-based access policies. These capabilities could help organizations determine where IonQ’s PQC and quantum key distribution, or QKD, protections should be deployed.
How Will the Acquisition Combine Zero Trust With Quantum Security?
IonQ intends to bring together three cybersecurity capabilities: PQC, QKD and zero trust security. The combination is designed to address threats facing enterprise and government networks while helping organizations prepare for security risks associated with advances in quantum computing.
The deal comes as federal PQC migration deadlines approach. Under Executive Order 14412, signed in June, agencies have until the end of 2030 to shift high-value assets and high-impact systems to PQC for key establishment and until the end of 2031 for digital signatures. National security systems are excluded.
One concern addressed by the combined offerings is the practice known as harvest-now, decrypt-later, in which attackers collect and store encrypted information with the intention of decrypting it when technology becomes capable of doing so.
IonQ Chairman and CEO Niccolo de Masi said the combined capabilities will provide enterprise and government customers with a unified security architecture to contain machine-speed attacks and safeguard sensitive information against future quantum threats.
What Does the Acquisition Mean for Elisity?
Elisity will continue serving customers under Winebrenner’s leadership following the acquisition. Current support teams will continue providing services to existing customers, with all active deployments and established identity policies remaining fully intact.
Winebrenner said the company intends to build on its experience serving customers while extending its technology to help organizations prepare for post-quantum cryptography.
Elisity is IonQ’s latest acquisition, following the purchase of semiconductor foundry SkyWater Technology on July 31. In January, IonQ acquired Seed Innovations, a software and technology research and development company.
